RI tries to ease debt burden of poor states<\/p>\n
By Achmad Nuhoeri<\/p>\n
JAKARTA (JP): Indonesia plans to continue using its position
\nas chair of the Non-Aligned Movement to urge the rich
\nindustrialized countries to address the huge debts of Third World
\ncountries, an official said.<\/p>\n
Economist Emil Salim, a member of NAM's task force on debt,
\ndisclosed at a seminar on Monday Indonesia's plan to try and
\npersuade the leaders of the Group of Seven (G-7) industrialized
\ncountries to discuss the issue at their next summit in Halifax,
\nCanada, later this year.<\/p>\n
Speaking at a seminar on the role of NAM and Third World debts
\norganized by the University of Indonesia, Emil said Indonesia is
\nproposing that the industrialized countries invest more in the
\nheavily indebted African countries to help them pay their way out
\nof their debt problems.<\/p>\n
He did not say how Indonesia plans to push this issue through
\nthe G-7 agenda.<\/p>\n
President Soeharto, the current chairman of NAM, made a major
\nbreakthrough when he traveled to Tokyo in 1993 to meet with some
\nof the G-7 leaders. At the time, he pleaded on behalf of NAM
\nmembers that they address the debt problem of Third World
\ncountries, particularly African states. The issue was later
\nincorporated in the final communique of the G-7 summit.<\/p>\n
Emil said however that African states must also show their
\nwillingness to ensure political stability, which clearly is a
\nprerequisite for economic development. "Nobody will invest in a
\ncountry that is unstable."<\/p>\n
The one-day seminar at the University of Indonesia was
\norganized by the recently-established NAM Study Center, part of
\nthe university's School of Social and Political Sciences.<\/p>\n
Other speakers invited were Nana Sutresna, head of the NAM
\nExecutive Committee, Riza Sihbudi of the Indonesian Institute of
\nSciences and Soedjati Djiwandono of the Centre for Strategic and
\nInternational Studies.<\/p>\n
Emil said the world had virtually ignored the debt problem of
\nAfrican states until NAM addressed it when Indonesia took over
\nleadership of the organization in 1992.<\/p>\n
"More than 55 countries, mostly in Africa, are heavily
\nindebted and nobody showed any concern except for NAM," he said,
\nadding that NAM is the only institution with the will to help the
\npoor African states out of their predicament.<\/p>\n
He described the Paris Club, a forum of western creditors, as
\ntoo demanding and the World Bank as too harsh in their quick
\ncondemnations of countries unable to pay their debts.<\/p>\n
He said the problem in some African countries has reached the
\npoint where they cannot even pay the interest on their debts, let
\nalone the principal.<\/p>\n
Soedjati's presentation, in contrast to Emil's, was
\npessimistic about NAM's success in winning concessions from the
\nindustrialized countries over the debt issue.<\/p>\n
Lip service<\/p>\n
He said the pledge of cooperation by the industrialized
\ncountries was nothing but lip service. However, he agreed that
\nsomething positive has come out of NAM on the debt issue during
\nIndonesia's chairmanship.<\/p>\n
"Indonesia's fine record as a debtor compels the G-7 countries
\nto listen to the pleas for assistance. They (G-7) also hope that
\nIndonesia will influence other NAM members and the way they
\nmanage their debts."<\/p>\n
Nana Sutresna said Indonesia hopes the progress achieved by
\nIndonesia during its three-year term as NAM chairman will be
\ncontinued by Colombia, which has been appointed to take over the
\nleadership later this year.<\/p>\n
The senior diplomat said President Soeharto has proposed the
\ncreation of the Center for Development within NAM which will help
\nmembers handle their debt problems.<\/p>\n
Indonesia and Colombia have been in touch to discuss the NAM
\nleadership. "Indonesia will not take its hands completely off NAM
\nafter its leadership period ends," said Nana.<\/p>",
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